Question
Suzan is currently consuming 3 marshmallows and 3 bags of jellies, and she is spending all her income on marshmallows and bags of jellies. The
Suzan is currently consuming 3 marshmallows and 3 bags of jellies, and she is spending all her income on marshmallows and bags of jellies.
The marginal utility of her last marshmallow consumed is 85 utils and her marginal utility of the last bag of jellies consumed is 22 utils.
The price of a marshmallow is $5, and the price of a bag of jellies is $1.
1. Marginal Utility per price from consuming the last marshmallow is equal to _____.*
a. 22
b. 107
c. 85
d. 17
2. Marginal Utility per price from consuming 3 marshmallows is _______ Marginal Utility per price from consuming 3 bags of jellies.*
a. Greater than
b. Greater than or equal to
c. less than
d. Equal
3. To get back to equilibrium, the quantity consumed of bags of jellies will_______.*
a. Decrease.
b. Increase.
c. Stay the same.
d. Reach maximum.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started